D-40EZ Single and Joint Filers with No Dependents D-40 All other Individual Income Tax Filers

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1 2010 District of Columbia (DC) Individual Income Tax Forms and Instructions D-40EZ Single and Joint Filers with No Dependents D-40 All other Individual Income Tax Filers Secure - Accurate - Faster Refunds... District of Columbia electronic Taxpayer Service Center File Electronically Today! You may use etsc to file and pay online for Forms D-40ES (estimated tax) and FR-127 (extension of time to file). Payments may be made by e-check or credit card. A direct deposit refund option is available. INSIDE Contents Chief Financial Officer s letter 2 General Instructions for the D-40EZ and D-40 Who must file a DC income tax return? 3 Which form should you file? 3 When are your taxes due? 3 How to file your return 4 Direct deposit of refund 7 Refund status inquiry 8 Payment options 8 Penalties and interest 9 Low Income Credit Table 11 Instructions for the D-40EZ 14, 16 Instructions for the D Tax tables and ads Tax tables for taxable income of 100,000 or less Anacostia River Clean Up and Protection Fund Ad 57 DC College Savings Plan (D-40 filers only) 59 Need assistance? Back Cover Forms D-40EZ form 13, 15 D-40 form and schedules Schedule S, Supplemental Information and Dependents Schedule H, Homeowner and Renter Property Tax Credit Schedule U, Additional Miscellaneous Credits and Contributions Schedule I, Additions to and Subtractions from Federal Adjusted Gross Income Schedule N, DC Non-Custodial Parent EITC Claim D-40P, Payment Voucher (All filers) FR-127, Extension of Time to File a DC Income Tax Return (All filers) New for 2010 Same-sex spouses, see page 5 Penalty and interest, see page 9 Beginning with Tax Year 2011, the District will no longer mail paper packages to your home. Taxpayers can download the forms and instructions from our website, You may also find other methods of obtaining paper forms from this website address. Revised 11/10 C

2 Government of the District of Columbia Office of the Chief Financial Officer Natwar M. Gandhi Chief Financial Officer Dear Taxpayer: On behalf of the Government of the District of Columbia, I would like to thank you for paying your personal income taxes. Your taxes help support vital services and programs, such as street cleaning, police protection, health care programs and educational needs for our children. As a taxpayer, you are an important investor in this city. In Fiscal Year 2010, the District undertook a major initiative to collect revenue owed by delinquent taxpayers. The Office of Tax and Revenue offered a tax amnesty program which allowed delinquent individuals and businesses to pay their overdue taxes and interest, while avoiding penalties and fees. I am pleased that more than 11,500 taxpayers took advantage of the amnesty program, as this money has come at a most important time. The amnesty program collected more than 20.8 million, exceeding the 2010 budget estimate. I encourage you to join the more than 195,000 taxpayers who filed their tax returns electronically last year. You will save time, get your refund faster, and even pay taxes owed on time. To file electronically, simply go to the District s electronic Taxpayer Service Center (etsc) at Most importantly, filing electronically will help save vital tax dollars, which is particularly important since our resources are severely constrained during these difficult economic times. If you need assistance, please contact OTR s customer service specialists at (202) 727-4TAX (4829) or visit our Walk-In Center at th Street, SW, Suite 270W, Washington, DC During the year ahead, we will continue to look for ways to maximize and preserve the revenue you provide to the District of Columbia through your tax dollars. Sincerely, Natwar M. Gandhi Chief Financial Officer 1350 Pennsylvania Avenue, N.W., Suite 203, Washington, DC (202)

3 General Instructions for D-40EZ/D-40 Who must file a DC income tax return? You must file a 2010 DC individual income tax return if You were a District of Columbia (DC) resident in 2010 and were required to file a federal income tax return. (A resident is an individual whose permanent legal residence is within the District during the taxable year.), or You maintained a place of residence in DC for a total of 183 days or more during 2010 even if your permanent residence was outside DC, or You were a member of the U.S. armed forces and DC was your legal residence for tax purposes for all or part of Note that even if you are the spouse/registered domestic partner of someone not required to file, such as a non-resident presidential appointee, and you meet any of the above requirements, you yourself must file. You do not need to file a 2010 DC individual income tax return if You were not required to file a 2010 federal income tax return. You were not considered a resident of DC during You were an elected member of the U.S. government who was not domiciled in DC. You were an employee on the personal staff of an elected member of the U.S. Congress and you and the elected member were bona fide residents of the same state. You were a member of the U.S. Executive Branch appointed by the President, subject to U.S. Senate confirmation, whose tenure of office is at the pleasure of the President and you were not domiciled in DC during any part of You were a justice of the U.S. Supreme Court and were not domiciled in DC during any part of Special filing circumstances Amended return File an amended DC return if your DC tax liability for a prior open tax year (usually 3 years) has changed on the D-40 for the year you are amending. To file an amended return for the current year, complete another 2010 DC return with the corrected information and fill in the amended return oval on the form. Attach a list with explanations of the changes covered by your amended return. If you are filing an amended return for a prior year, attach a copy of the return filed for that year. You can download forms from or call to request forms by mail. If the IRS adjusts your individual federal tax return, you must file an amended DC return within 90 days of receiving notice of the federal adjustment. Attach a copy of the adjusted federal return. Refund of DC taxes If you believe you are entitled to a refund and you are not required to file a DC income tax return and: You are a DC resident, you file a Form D-40, Individual Income Tax Return or D-40EZ, Income Tax Return for Single and Joint Filers with No Dependents; or You are not a DC resident, you must file a Form D-40B, Nonresident Request for Refund. Which form should you file? D-40EZ Income Tax Return for Single and Joint Filers with No Dependents You may use this simpler form if you meet all of the following: Your filing status is single or filing jointly with a spouse or a registered domestic partner. (Domestic partners are registered with the Vital Records Division of the DC Department of Health); You were a DC resident from January 1 through December 31, 2010; Your taxable income is 100,000 or less and consists only of wages, salaries and tips; taxable scholarships or fellowship grants; unemployment compensation; and/or interest and dividends (1500 maximum); You did not make estimated income tax payments; You do not claim dependents; You do not claim an exemption for being age 65 or older or legally blind; You have no federal adjustments to income; You do not itemize deductions; You do not file DC Schedules S, H, U, I, or N; You do not claim a deduction for a payment to the DC college savings plan; and You do not claim a long-term care insurance premium deduction. D-40 Individual Tax Return Use this form if you cannot use the D-40EZ. D-41 Fiduciary Income Tax Return Use the D-41 if you are the fiduciary of a DC estate or trust and: The gross income for the estate is 1,675 or more for the year; or The gross income for the trust is 100 or more for the year. When are your taxes due? File your return and pay any taxes due by April 15, If the due date for filing a return falls on a Saturday, Sunday or legal holiday, the return is due the next business day. FR-127 Extension of Time to File Income Tax Return An extension of time to file of six months may be granted if a valid extension of time to file is requested. In order to be valid, a FR-127 Extension of Time to File form must be filed by April 15, 2011 and must be submitted using the following appropriate form: 1. If you expect to have a balance due when you file the Form FR-127, you must pay the estimated balance due. 2. If you do not expect to have a balance due when you file your D-40, you would not be required to file a Form FR-127, if you have: A. Reasonably estimated your D-40 tax liability and paid the estimated amount of DC income taxes through withholding or estimated tax payments; and B. Filed a request to extend the time to file your federal individual income tax return with the Internal Revenue Service (IRS). The timely filed federal extension to file form will satisfy the requirement for filing a Form FR-127 with DC. 3. If you do not expect to have a balance due and you have not filed an extension of time to file for your federal individual income tax return and wish to request an extension for your DC income tax return, you should submit a Form FR-127. Penalty and interest charges are imposed on any tax found owing and not paid on time with the extension request. 3

4 How to file your return By mail If mailing a return with a payment, send it to: Office of Tax and Revenue PO Box 7182 Washington, DC If mailing a refund request return or a no money due return, send it to: Office of Tax and Revenue PO Box 209 Washington, DC There are two adhesive mailing labels on the back flap of your return envelope. If you are sending a payment with your return, use the PO Box 7182 mailing label on your return envelope. If you are filing a no money due or a refund requested return, use the PO Box 209 mail label on your return envelope. Do not include more than one return per envelope. By DC electronic filing (e-file) E-File offers most DC individual income taxpayers a full Federal/ State Electronic Filing program. There are two ways in which taxpayers can file their federal and DC returns together electronically: 1) through a tax practitioner who is an authorized e-file provider; or 2) through a commercial online filing service, which allows taxpayers to transmit their DC and Federal returns from their PC for a fee. In addition, we offer a free and easy way to file your DC income tax return on the Internet directly with the Office of Tax and Revenue (OTR). The electronic Taxpayer Service Center (etsc) allows you to file your D-40 or D-40EZ, 24 hours a day, 7 days a week. This internet site provides a full calculation of DC tax and credits. This filing option is available to taxpayers who filed a D-40 or D-40EZ tax return in You may also use etsc to file and make payments with the D-40ES and FR-127. For more information visit If you use one of our e-file options to file your DC return, you may also choose to have your refund deposited directly into your checking or savings account. See the instructions on page 7. Getting started To complete the Forms D-40 or D-40EZ, in general you will need: A copy of your completed 2010 federal return, as applicable (Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ) and any additional forms or worksheets related to the return.you can copy many entries directly from federal forms 1040, 1040A, 1040EZ, 1040NR and 1040NR-EZ. Please be careful since the line numbers may differ from the District Forms D-40 or D-40EZ line numbers. A copy of your completed state returns if you filed an income tax return with another state. Your W-2 and applicable 1099 forms with DC withholding tax or tax refund. A pen with black ink. A calculator. Not all items will apply. Fill in only those that do. If an amount is zero, make no entry, leave the line blank. Do not enter cents. Round cents to the nearest dollar. Examples: 10, rounds to 10,501 10, rounds to 10,500 4 Taxpayer Identification Number(s) (TIN) You must have a TIN, whether it is a SSN or FEIN. If you apply for a SSN, it must be a valid number issued by the Social Security Administration (SSA) or the United States Government. To apply for a SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at You may also get this form by calling ; If you apply for a FEIN, it must be a valid number issued by the Internal Revenue Service (IRS). To apply for a FEIN, get Form SS-4, Application for Employer Identification Number, or get this form online at and clicking on Employer Identification Number (EIN) under Starting a Business. You may also get this form by calling TAX-FORM ( ). You must wait until you receive either number before you file a DC return. Your return may be rejected if your TIN is missing, incorrect or invalid. You could be subject to a balance due or disallowance of credits or exemptions, if your dependents or other non-qualifying person s TINs are missing, incorrect or invalid. If you are filing a joint return, or filing separately on the same return, enter the name and SSN shown first on your return, then enter the name and SSN shown second on your return. Incomplete information or failure to follow these instructions will delay processing your return. Filling out the form To aid us in processing your return please follow these rules. Do not print outside the boxes. Use black ink. Print in CAPITAL letters. Leave a space between words and between words and numbers. Write 3s with a rounded top, not a flat top. Write 7s without a middle bar. Fill in ovals completely. Do not 3 or x ovals. Do not enter cents. Round cents to the nearest dollar. R O B E R T S 8 E L M x Note: Your social security number is used for tax purposes only. Personal information Complete the personal information as instructed using CAPITAL letters and black ink. Use one block per letter, including using a space between address fields. Please write clearly; otherwise this can delay processing your return. Wages, tips and salaries Enter the amount from your federal 1040 or 1040A, Line 7, or 1040EZ, Line 1; or 1040NR, Line 8; or 1040NR-EZ, Line 3 plus any unemployment compensation received on Line 1 of the D-40EZ or Line a, Income Information on the D-40.

5 DC income tax withheld Add the DC income tax withheld as shown on your 2010 federal forms W-2 and applicable Attach all copies of your Forms W-2 and 1099 that show DC tax withheld to the Forms D-40 or D-40EZ. Filing status More than one filing status may apply to you. Use the one that will give you the lowest tax. Generally, you will use the same filing status on your DC return as that used on your federal return. However, if you used married filing jointly on your federal return, it may be better for you to file your DC return using either married filing separately or filing separately on the same return. If both have income, figure the tax both ways. Single (D-40 and D-40EZ) You were unmarried, divorced or legally separated as of December 31, 2010, or were widowed prior to January 1, 2010, and did not remarry before January 1, Filing Jointly (D-40 and D-40EZ) You were married or have a registered domestic partner and both spouses/domestic partners were DC residents as of December 31, 2010, or your spouse/domestic partner died in 2010 and you did not remarry/register in If legally separated, do not file jointly. If your spouse died during the year, you are considered married for the whole year for filing status purposes. If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Registered domestic partners (D-40 and D-40EZ) To be considered as a domestic partner for DC tax purposes, the parties must be registered with the Vital Record Division of the DC Department of Health. If you have registered your relationship you may either file a joint return or file separately on the same return. You may also file as single. Domestic partners or other similar relationships in other juridsictions: If you have registered your relationship in another jurisdiction, you may file a joint return, or file separately on the same return, or file a separate return using the single status. If you are visiting the DC OTR for assistance in preparing your DC Income Tax Return, registered domestic partners must first prepare a not to be filed (mock) joint federal return. If filing jointly is chosen, enter both spouse s/domestic partner s total federal AGI on Line 1 of the Form D-40EZ, or Line 3 of the Form D-40. Same-sex spouses. If you are same-sex spouses, you may file either a joint return or file separately on the same return. Samesex spouses filing a joint DC D-40 may wish to prepare a not to be filed (mock) joint federal return solely to calculate the benefits of filing jointly or married filing separately on the same D-40. If filing jointly is chosen, enter the total federal adjusted gross income of both spouses/partners on Line 3, Form D-40. If filing separately on the same return is chosen, follow the instructions under Married or registered domestic partners filing separately on the same return. If you are filing a joint return, or filing separately on the same return, enter the name and SSN shown first on your return, then enter the name and SSN shown second on your return. Married fiing separately (D-40) You are married or have a registered domestic partner and both spouses/partners had income. Include your spouse/domestic partner s name and social security number in the Personal Information section. You will each report only your own income, exemptions, deductions, and credits. You will each report one-half of the income from any securities, bank accounts, real estate, etc., that are registered or titled in both names. If you are married you must use this filing status if You and your spouse were part-year residents of DC during different periods of 2010; You were a DC resident and your spouse was one of the following: A member of the US Armed Forces and not considered a DC resident, but you are required to report income in DC; A member of the US Congress or an employee on the personal staff of a member of Congress who is considered a resident of the member s state of residency; An officer of the US Executive Branch whose primary residence was not in DC, who is appointed by the President, confirmed by the US Senate and serves at the pleasure of the President; or A Justice of the US Supreme Court whose primary residence was not in DC. Dependent claimed by someone else (D-40 and D-40EZ) If you are claimed as a dependent on someone else s return, fill in the dependent oval on the return(s). Married or registered domestic partners filing separately on the same return (D-40) If you claim this status, you and your spouse/domestic partner must combine your separate amounts using Calculation J on Schedule S so that you will either receive one refund or make one tax payment. You may also claim a credit for child and dependent care expenses, which you are not allowed to claim if you file separate returns. Using this filing status may reduce the amount of tax you owe by allowing each spouse/domestic partner to take advantage of lower tax brackets. Before completing Schedule S, Calculation J and the Form D-40, you will need to figure the following for you and your spouse/domestic partner: Each person s federal adjusted gross income; Each person s additions to federal income; Each person s subtractions from federal income; Each person s deductions; and Each person s exemptions. NOTE: If you and your spouse/domestic partner were part-year residents of DC during different periods of 2010, you cannot file separately on the same return. You must file separate returns. Head of Household (D-40) You may claim this status if you were unmarried or legally separated as of December 31, 2010, and paid over half of the costs of maintaining a home for a qualifying person, such as a child or parent. Certain individuals who lived apart from the spouse/domestic partner for the last six (6) months of 2010 may also be able to use this filing status. Standard Deduction and Exemption Amounts (D-40EZ and D-40) Federal legislation allows non-itemizers to take the lesser of net disaster loss or 100 as part of the standard deduction. DC non-itemizers 5

6 should enter these deductions in whole dollar amounts and include on Line 4 total of the D-40EZ or Line 17 of the Form D-40. Real estate taxes are no longer allowed for non-itemizers, whether filing the D-40 or the D-40EZ. You are not entitled to the standard deduction if you itemize on your federal return. You are entitled to the itemized deductions excluding the state and local taxes. District Code (c) states Every individual who claims the standard deduction on his or her federal income tax return shall claim the applicable standard deduction specified in District Code (26). Every individual who itemizes the deductions on his or her federal income tax return shall itemize the deductions permissible under this chapter. If a husband and wife or domestic partners file separate returns, the applicable standard deduction shall not be allowed to either spouse or domestic partner if the net income of one of the spouses/domestic partners is determined by itemizing deductions. Each spouse/domestic partner can claim only their own itemized deductions. Standard Deduction Married filing separately or registered domestic partners filing separately are allowed a standard deduction of 2,000. All other filing statuses are allowed a standard deduction of 4,000. If you are filing single and claiming more than one exemption or married or registered domestic partners filing jointly, and claiming more than two exemptions, complete Calculation G on page 2 of the Schedule S and atttach the schedule to the return, Form D-40. Taxpayers can add the net disaster loss to their standard deduction, not to exceed 100, even if they do not itemize deductions. Number of Exemptions If you are filing a D-40 and if you are filing single and claiming more than one exemption, or married or registered domestic partner filing jointly and claiming more than two exemptions, complete Calculation G on page 2 of Schedule S and attach that schedule to your D-40. If you are a dependent claimed by someone else, do not claim any exemptions. Leave Lines 18 and 19 blank on the D-40. Exemption Amount Enter 5,675 if filing status is single on the D-40EZ or multiply 1,675 by Line 18 of the D-40 number of exemptions. If you do not have exemptions, leave Line 19 blank on the D-40. If filing jointly on the D-40EZ, enter 7,350 for standard deduction and exemption. If you are a dependent claimed by someone else, complete the oval Dependent claimed by someone else on the D-40EZ or D-40 under filing status. You are not eligible to claim an exemption. Enter 4,000 on Line 4 of the D-40EZ. If you are completing the D-40 as a dependent claimed by someone else, leave Lines 18 and 19 blank on the D-40. Credits There are two credits offered to DC taxpayers: (1) DC Low Income Credit (LIC) and (2) DC Earned Income Credit (EITC). The LIC is a non-refundable credit, which means it can reduce the DC tax you owe, but it will not directly result in a tax refund. The EITC is a refundable credit. If the IRS is calculating your federal EITC, wait until they notify you of that amount before you determine your DC EITC. If you take the federal income earned credit, it may be better for you to take the DC Earned Income Credit instead of the DC Low Income Credit. You cannot take both DC credits. DC Low Income Credit (LIC) To qualify for this credit: You cannot have computed your federal AGI using the Alternative Minimum Tax (AMT) calculation; The amount of DC taxable income on Line 21 of your D-40 or Line 5 of the D-40EZ is more than zero; and Your DC AGI (D-40, Line 3 and D-40EZ, Line 15) is greater than the sum of DC personal exemptions and DC standard deduction and is less than or equal to the sum of your federal personal exemptions and your federal standard deduction. Calculation of Eilgibility If your DC taxable income is greater than zero, complete this chart to determine if you are eligible for the low income credit. Line 1 DC AGI Line 2 Federal personal exemptions amount Line 3 Federal standard deduction amount Line 4 Sum of Line 2 and Line 3 Line 5 If Line 1 is greater than Line 4 you do not qualify Line 6 DC personal exemption amount Line 7 DC Standard deduction amount Line 8 Sum of Line 6 and Line 7 Line 9 If Line 1 is greater than Line 8 continue STOP Complete Calculation LIC/EITC for D-40EZ on back of form or Calculation L on page 21 for D-40 taxpayers to determine which DC credit is better for you. To determine the low income credit, see the Low Income Credit Table on page 11. Dependents claimed by someone else should use the calculation at the bottom of page 11 to determine the low income credit available. You must enter the number of federal exemptions to calculate the LIC, Forms D-40EZ, Line 7a, or D-40, Line 25a. DC Earned Income Tax Credit (EITC) Taxpayers who claim the federal EITC may also claim a DC EITC of 40% of the federal credit. Taxpayers who claim the DC LIC credit may not claim the EITC. You may take only one of these DC credits. Complete the calculation on the back of the D-40EZ or Calculation L on page 21 of the D-40. If the IRS is calculating your federal EITC, wait until they notify you of that amount before you determine your DC EITC. If your filing status is Dependent claimed by someone else or Married or registered domestic partner filing separately, you cannot take the DC EITC. 6

7 D-40 filers. DC Law also allows the same 40% of federal EITC to those who are not allowed to claim the EITC at the federal level but who meet other DC requirements, such as a non-custodial parent who is a District resident between the ages of 18 and 30, and paying child support under a court order for a minor child. The taxpayer must have paid the child support of at least the amount due for the year through a government sponsored support collection unit and the order must have been in effect for at least one-half of the year. Complete Schedule N, DC Non-Custodial Parent EITC Claim, and attach to the D-40. Also enter the amount to be claimed on the Schedule U, Part 1B, Line 1. Please enter the number of qualified EITC dependents on Line 13a of the D-40EZ, or Line 28a of the D-40. Qualifying Child for EITC Purposes A qualifying child as defined by the IRS for the EITC is a child who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece or nephew) and was: Direct deposit of refund Direct Deposit Facts 1. It s simple. You don t have to go to the bank to cash your check. 2. It s safe. No more lost, stolen or misplaced checks. 3. It s fast. Your money will be available the morning of the payment. If you want your refund deposited directly into your bank account, complete the Direct Deposit Information above the signature line on the D-40 or D-40EZ. If the routing or account number begins with zeros, include the zeros. Fill in the bank routing and account number information. You can obtain this information from the lower left portion of your check (see example below). Under age 19 at the end of 2010; or Under age 24 at the end of 2010 and a student; or Any age and permanently and totally disabled. In addition, they must have lived with you in the US for more than half of 2010, unless you are claiming the EITC as a non-custodial parent (see D-40 instructions for Schedule N). If your child was married at the end of the year, the child is not a qualifying child unless they do not file a joint return and you can claim the child s exemption (if you are the non-custodial parent, you must have been given the right to claim the exemption in an agreement signed by the child s custodial parent releasing the dependency exemption). ABA Routing Number Bank Account Number Check Number DO NOT INCLUDE CHECK NUMBER Contributions There are three (3) DC contributions. Contributions will be deducted from the refund due or added to the tax due. You can contribute as much as you would like, however, the smallest contribution you can make to any one fund is Public Fund for Drug Prevention and Children at Risk. Enter in Line 9a of the D-40EZ, or Part II, Contribution, Line 2 of the Schedule U, and attach to the D-40. DC Statehood Delegation Fund. Enter in Line 9a of the D-40EZ, or Part II Contribution, Line 1 of the Schedule U, and attach to the D-40. Anacostia River Cleanup and Protection Fund. Enter in Line 9c of the D-40EZ, or Part II Contribution, Line 3 of the Schedule U, and attach to the D-40. Tax tables If your taxable income is 100,000 or less, use the tax tables on pages to find the tax on the Line 6 amount of the Form D-40EZ or Line 22 of the D-40. If your taxable income is greater than 100,000, for D-40EZ filers, use the Form D-40; otherwise use Calculation I on page 20 to determine your tax. Tax paid with extensions Report tax paid with extension of time to file with the original return. If this is an amended return enter on Line 12 of the D-40EZ or Line 33 of the D-40. Note: Refer to your own check or financial institution for your numbers. The routing and account numbers may be in different places on your check. Your routing number is the left-most number located on your check, identified as the American Banking Association (ABA) routing number. The ABA number identifies your bank uniquely within the direct deposit system. It must be: Nine (9) digits in length, including zeros; A current valid bank routing number. Your account number: Is usually just to the right of your ABA routing number including zeros; Can be up to 17 digits long; and Can be both letters and numbers. You may want to verify your account and routing numbers with your financial institution before filling in the information. Fill in the oval to show the type of bank account. If you want the refund to go to a savings account instead of your checking account, you may need to contact your financial institution for the account and routing number information. Check the ABA routing number and account number carefully. If your bank account information is incorrect or missing digits, the money can be deposited in someone else s account. If you do not 7

8 select the checking or savings oval, we will assume the refund will be deposited in your checking account. If the funds are returned to OTR, a paper check will be issued. Refund direct deposit to a foreign account International ACH Transaction (IAT) Electronic banking rules have changed. If you request your refund to be direct deposited to an account outside of the United States, you will receive a paper check. Refund status inquiry To check the status of your refund, visit com. You will need to enter your SSN and the refund amount you requested on your return. Payment options Check or money order. Include a check or money order, payable to the DC Treasurer, with your completed return. Write your social security number, daytime telephone number, 2010 and the type of form filed D-40 or D-40EZ on your payment. Attach your payment to the Form D-40P voucher provided in this booklet. Do not attach either to your return. Form D-40P, Payment Voucher. Use this form when sending a check or money order. Do not staple the voucher to the D-40 or D-40EZ. Include the D-40P with your D-40 or D-40EZ in the return envelope provided. Use the PO Box 7182 mail label from the back flap of the return envelope. Payment from a foreign account International ACH Transaction (IAT) If your payment will be drawn on a foreign account, you must pay by money order, or by credit card. Dishonored payments. Make sure your check will clear. You will be charged a 65 fee if your check is not honored by your financial institution and returned to OTR. Credit Card. You may pay the amount you owe on our 2010 tax return using Visa, MasterCard, Discover, or American Express. You will be charged a fee equal to 2.5% of your tax payment. The fee is paid directly to the Official Payments Corporation (OPAY), the credit card service provider. Payment is effective on the day you charge it. Online. Visit the website for Credit Card Payment or Electronic Check (e-check) Payment Information. By Phone 1. Dial (available 7 days a week, 24 hours a day) 2. Enter code 6000 (District of Columbia s Jurisdiction Code) 3. Complete the telephone transaction directly with the credit card processing vendor or electronic check processing vendor, Official Payments Corporation. You will be given a confirmation number, please keep it with your records. Third party designee If you want to authorize another person to discuss your 2010 tax return with the OTR, check the oval in the Third Party Designee block on page 2 of the D-40, or page 1 of the D-40EZ, and enter the designee s name and phone number. If you want to authorize your paid preparer, enter preparer in the third party designee block. If you are filing a joint return, checking the third party designee block oval constitutes authorization by both filers. Checking the oval also gives the designee authorization to: Give OTR any information missing from your return; Contact OTR for information about processing your return and the status of any refund or payment; and Request, receive and/or respond to OTR notices related to your return. The authorization does not: Give the designee the right to receive your refund; Bind you to any additional tax liability related to your return; or Give the designee the right to otherwise represent you before OTR. This authorization automatically ends on April 15, 2012 (without regard to extensions). Signature Sign and date your return. If your filing status is married filing jointly or married filing separately on the same return, both spouses/registered domestic partners must sign. If the return is not signed, it will be sent back to you. If the return was prepared by a paid tax preparer, the tax preparer must also sign the return and provide his or her identification (PTIN) and telephone number. You, the taxpayer(s) are responsible for the information prepared and submitted by a paid preparer. Send in your original return and attachments, if applicable; please keep a copy for your records. Paid Preparer Identification Number (PTIN) IRS rules have changed. If you are a paid tax preparer, you are required to have an IRS PTIN issued by the IRS. If you use a paid preparer, they are required to have an IRS PTIN issued by the IRS. Although you may use a paid preparer, you the taxpayer(s) are responsible for the filing and payment of your tax return. A PTIN is a number issued and authorized by the IRS to file a return on your behalf. Please review the tax return before you allow a paid preparer to issue a return on your behalf. Do not underestimate your taxes There may be a penalty if an understatement of the tax required to be shown on your return exceeds the greater of: 10% of the tax required to be shown on the return; or 2,000. The penalty is 20% of the excess of the amount required to be shown on the return over the tax shown on the return. Tax preparers must pay a penalty for understating taxes where: The refund or amount due is based on unrealistic information; or The preparer should have been aware of a relevant law or regulation; or Relevant facts about the return are not adequately disclosed. Penalties range from 250 to 10,000. Assembling your D-40EZ or D40 return Do not staple or otherwise damage the Bar Code located in the upper right hand corner of the form or schedule being attached; Do not cross out the tax year on the 2010 return. If you are not filing a 2010 individual income tax return, do not use this booklet. Request a booklet for the specific year you are filing by calling 8

9 our Forms Center at (202) , or visit Customer Service Center (CSA) at th Street, SW, Washington, DC You may visit our website at for prior year individual income tax returns; Staple check or money order to the D-40P, Payment Voucher; Staple Forms W-2 and applicable 1099 to the front of your return; Staple other required documents behind the return; Send in an original, signed DC return with attachments, if applicable, not a copy. Please fold your return once and use the return envelope provided; There are two adhesive mailing labels on the back flap of the return envelope. If you are sending a payment with your return, use the PO Box 7182 label on the return envelope. If you are filing a return with no payment due or refund return, use the PO Box 209 label. D-40 filers Staple all supporting forms and schedules behind the D-40. Staple Forms W-2 and 1099 to the front of Form D-40. Staple applicable forms and schedules behind the D-40 in the upper left corner in the following order: DC Form D-40 (with Forms W-2 and applicable 1099 stapled to the return); DC Schedule S (if claiming exemptions other than yourself); DC Schedule H (include the completed medical certification, and the total household gross income if less than or equal to 20,000), or if filed as a Standalone Return; DC Schedule U; DC Schedule I; DC Schedule N; Any state returns filed. Failure to provide copies of out of state tax return(s) can delay processing of your return. Any of the following forms can be found on our website. Visit Click Tax Forms and Publications, Individual Income Forms, and select form needed. DC Form FR-147, Refund Claim for Deceased Taxpayer, with letters of administration and a copy of the death certificate; DC Form D-2210, Estimated Tax Underpayment; DC Form D-2440, Disability Income Exclusion (and any certification); DC Form D-2441, Child and Dependent Care Credit for Part-Year Residents. Penalties and interest OTR will charge A penalty of 5% per month if you fail to file a return or pay any tax due on time. It is computed on the unpaid tax for each month, or fraction of a month, that the return is not filed or the tax is not paid. It may not exceed an additional amount equal to 25% of the tax due; D-40 W2, 1099 A 20% penalty on the portion of an underpayment of taxes if attributable to negligence. Negligence is a failure to make a reasonable attempt to comply with the law or to exercise ordinary and reasonable care in preparing tax returns without the intent to defraud. One indication of negligence is failure to keep adequate books and records; Interest of 10% per year, compounded daily, on a late payment; A one-time fee to cover internal collection efforts on any unpaid balance. The collection fee assessed is 20% of the tax balance due after 90 days. Payment received by OTR on accounts subject to the fee are first applied to the fee then to penalty, interest and tax owed; A civil fraud penalty of 75% of the underpayment which is attributable to fraud (see DC Code ). Penalties and interest accrued may be reported on Line 17 of the D-40EZ or Lines 38, 43a or 43b of the D-40. This will include Estimated Tax Underpayment Penalty, Form D-2210, which can be located at File the Form D-2210 with your return. Enforcement actions OTR may use lien, levy, seizure, collection agencies, and liability offset if the taxpayer fails to pay the District within 10 days after receiving a Notice of Tax Due and a demand for payment. Visit www. taxpayerservicecenter.com. Click Information, Collection Division, Enforcement Actions. Criminal penalties You will be penalized under the criminal provisions of the DC Code, Title 47 if you are required to file a return or report, or perform any act and you - Fail to file the return or report timely. If convicted, you will be fined not more than 1,000 or imprisoned for not more than 180 days, or both, for each failure or neglect; Willfully fail to file the return or report timely. If convicted, you will be fined not more than 5,000 or imprisoned for not more than 180 days, or both; Willfully attempt to evade or defeat a tax; willfully fail to collect, account for, or pay a tax; or willfully making fraud and false statements or failing to provide information. See DC Code through These penalties are in addition to penalties under DC Code for false statements (and any other applicable penalties). Corporate officers may be held personally liable for the payment of taxes owed to DC, if not paid. 9

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11 Low Income Credit Table (This is not a tax table) Use this table to determine the DC low income credit amount that you can claim. This is a non-refundable credit, which means it can reduce the DC tax you owe, but it will not directly result in a tax refund. Personal exemptions claimed on your federal return Single Under 65 and not blind Under 65 and blind or over and not blind or over and blind Married or registered domestic partners filing jointly Both spouses/partners are under 65 and not blind Both spouses/partners are under 65 and one is blind Both spouses/partners are under 65 and both are blind One spouse/partner is 65 or over and neither is blind One spouse/partner is 65 or over and one is blind One spouse/partner is 65 or over and both are blind Both spouses/partners are 65 or over and not blind Both spouses/partners are 65 or over and one is blind Both spouses/partners are 65 or over and both are blind Married or registered domestic partners filing separately Under 65 and not blind Under 65 and blind or over and not blind or over and blind Head of household Under 65 and not blind Under 65 and blind or over and not blind or over and blind Low Income credit for dependent claimed by someone else a Your federal standard deduction from 1040, Line 40; 1040A, Line 24; or 1040EZ, Line 5. a b DC standard deduction b 4, c Subtract Line b from Line a c d Low Income Credit Using line c, refer to the tax tables on pages to find the corresponding d tax amount. Enter it here and on D-40, Line

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13 STAPLE W-2s AND ANY OTHER WITHHOLDING STATEMENTS HERE Government of the District of Columbia Print in CAPITAL letters using black ink. s STAPLE OTHER DOCUMENTS IN UPPER LEFT IN BACK s 2010 D-40EZ Income Tax Return for Single and Joint Filers with No Dependents l * * Filing status: Single, Married filing jointly, Registered domestic partners filing jointly, or Dependent claimed by someone else Fill in if Amended Return Your social security number (SSN) Spouse s/registered domestic partner s SSN Your daytime telephone number Your first name M.I. Last name Spouse s/registered domestic partner s first name M.I. Last name Home address (number, street and apartment number if applicable) City State Zip Code +4 1 Total wages, salaries, tips, unemployment compensation, etc. 2 Taxable interest and ordinary dividends. (If more than 1500, file form D-40.) 3 DC adjusted gross income. Add Lines 1 and 2. 4 Standard deduction plus exemption. If single, enter If filing jointly, enter 7350, or if claimed as a dependent on another s tax return, enter 4000 plus net disaster loss claimed on federal return,.00. See p. 6. Include in Line 4 total. 5 DC taxable income. Line 3 minus Line 4. If Line 4 is equal to or more than Line 3, make no entry. If more than 100,000 file form D Tax. Use the tax tables on pages to find the tax on the Line 5 amount. 7 DC Low Income Credit. Use Calc. LIC/EITC on page 8, to see if LIC or EITC is a greater benefit. 7a Enter number of exemptions claimed on your federal return 7a 8 Net tax. Subtract Line 7 from Line 6. If Line 7 is equal to or more than Line 6, make no entry. 9a 9b 9c 9d Contribution to Public Fund for Drug Prevention and Children at Risk. Contribution to DC Statehood Delegation Fund. Contribution to Anacostia River Cleanup and Protection Fund Direct Deposit. To have your refund deposited to your account checking or savings fill in the oval and enter bank routing and account numbers. See page 7. Routing Number RESERVED 10 Tax and/or contribution(s). Add Lines 8, 9a, 9b, 9c and 9d. 11 Total DC income tax withheld, shown on Forms W-2 and 1099 attach these forms. 12 Tax paid with extension of time to file or with original return if this is an amended return. 13 DC Earned Income Tax Credit. Enter your federal earned income credit See Calculation LIC/EITC on page 7. (Leave blank if you took Line 7 credit.) 13a Enter number of qualified EITC children 14 Total tax payments and credits. Add lines Refund. If Line 14 is the larger, subtract Line 10 from Line Amount owed. If Line 10 is the larger, subtract Line 14 from Line 10. See payment options on page Penalty.00 Interest.00 See page 9. Enter results 18 TOTAL AMOUNT DUE. Add lines 16 and TOTAL REFUND. Subtract Line 17 (results) from Line 15 and enter here. Will the refund you requested go to an account outside of the US? Yes No See p.8. Account Number.00 Third party designee To authorize another person to discuss this return with the OTR, fill in here and enter the name and phone number of that person. See page 8. 13a x.40 = OFFICIAL USE ONLY Vendor ID# a 9b c.00 9d Designee s name Phone number Signature Under penalties of law, I declare that I have examined this return and, to the best of my knowledge, it is correct. Declaration of paid preparer is based on the information available to the preparer. Your signature Date Paid preparer s signature Date Spouse s/domestic partner s signature if filing jointly Date Paid preparer s FEIN, SSN or PTIN Paid preparer s telephone number Revised 11/ D-40EZ Income Tax Return

14 Personal information (SSN, name, address, telephone number) Refer to page 4 of the General Instructions to prepare personal information. Filing status Refer to page 5 of the General Instructions regarding filing status, and fill in the appropriate filing status. Line 1 Total wages, salaries, tips, unemployment compensation, etc. Enter amount from 1040 or 1040A, Line 7; 1040EZ, Line 1; 1040NR, Line 8; or 1040NR-EZ, Line 3. Line 2 Taxable interest and ordinary dividends. If more than 1,500, file the Form D-40. Taxable interest should be shown on your Forms 1099-INT, 1099-OID, or substitute statements. Include interest from series EE, HH and I US savings bonds. Do not report any tax-exempt interest from box 8 or 9 of Form 1099-INT. Report on Line 2: If you have any interest received from a seller-financed mortgage and the buyer used the property as a personal residence; If you have accrued interest from a bond; If you are reporting original issue discount (OID) in an amount less than the amount shown on the IRS Form 1099-OID; If you are reducing your interest income on a bond by the amount of the amortized bond premium; If you are claiming the exclusion of interest from Series EE or I US savings bonds issued after 1989; If you received interest or ordinary dividends as a nominee; or If you had a foreign account or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Foreign accounts. If you own more than 50% of the stock in any corporation that owns one or more foreign bank accounts; or if any time during 2010 you had an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account) unless: The combined value of the accounts was 10,000 or less during the whole year; The accounts were with a US military banking facility operated by a US financial institution; You were an officer or employee of a commercial bank that is supervised by the Comptroller of the Federal Reserve System, or the Federal Deposit Insurance Corporation; the account was in your employer s name; and you did not have a personal financial interest in the account; You were an officer or employee of a domestic corporation with securities listed on a national securities exchange or with assets of more than 10 million and 500 or more shareholders of record; the account was in your employer s name; you did not have a personal financial interest in the account; and the corporation s chief Instructions for the D-40EZ DC Low Income Credit or DC Earned Income Tax Credit Calculation LIC/EITC Take only one of these credits. (Use this calculation to determine which is better for you to claim) a Tax from D-40EZ, Line 6 b Low income credit c Enter the lesser of Line a or Line b d Federal Earned Income Credit claimed on 1040, Line 64a; 1040A, Line 41a; 1040EZ, Line 9a. e DC Earned Income Tax Credit rate f DC Earned Income Tax Credit Multiply Line d by Line e (round to the nearest dollar). Compare Line c to Line f. If Line c amount is greater than or equal to Line f, enter it on D-40EZ, Line 7. If Line f amount is greater than line c, enter it on D-40EZ, Line 13. financial officer has given you written notice that the corporation has filed a current report that includes the account. Report any income shown in Box 1a of the Forms 1099-DIV or substitute statements. You may refer to the General Instructions for Schedule B Interest and Ordinary Dividends from Line 3 DC Adjusted Gross Income. Add Lines 1 and 2. Line 4 Standard deduction plus exemption. Refer to page 6 of the General Instructions regarding standard deduction and personal exemptions. Line 5 DC taxable income. Line 3 minus Line 4. If Line 4 is equal to or more than Line 3, make no entry. If more than 100,000, file the Form D-40. Line 6 Tax. Refer to the instructions on page 7 of General Instructions. Line 7 DC Low Income Credit. Refer to instructions on page 6 of General Instructions. Line 7a Number of exemptions claimed on federal return. Enter the number of federal exemptions. Line 8 Net Tax. Subtract Line 7 from Line 6. If Line 7 is equal to or more than Line 6, make no entry. Lines 9a, 9b and 9c Refer to instructions on page 7 of General Instructions. Line 10 Tax and/or contributions. Add Lines 8, 9a, 9b, and 9c. Line 11 Total DC income tax withheld. Refer to instructions on page 5 of General Instructions. Line 12 Tax paid with extension of time to file or with original return if this is an amended return. Refer to page 7 of General Instructions. Line 13 DC Earned Income Tax Credit. Refer to page 6 of General Instructions. Line 13a Number of Qualified EITC Children. Enter the number of qualified children as defined on page 7 of the General Instructions. Line 14 Total tax payments and credits. Add lines Line 15 Refund. If Line 14 is the larger, subtract Line 10 from Line 14. Include contributions. Answer the IAT question; refer to page 8 of the General Instructions. Line 16 Amount Owed. If Line 10 is the larger, subtract Line 14 from Line 10. Refer to Payment options on page 8 of the General Instructions. Line 17 Penalty and interest. Enter any underestimated penalty and interest owed in the appropriate boxes. Refer to page 9 of the General Instructions. a b c d e f x.40 Line 18 Total amount due. Add lines 16 and 17. Line 19 Total refund. Subtract Line 17 (results) from Line 15. Direct Deposit. Refer to page 7 of General Instructions. Third Party Designee. Refer to page 8 of General Instructions. Signature. Refer to page 8 of General Instructions. PTIN. Refer to page 8 of General Instructions.

15 STAPLE W-2s AND ANY OTHER WITHHOLDING STATEMENTS HERE Government of the District of Columbia Print in CAPITAL letters using black ink. s STAPLE OTHER DOCUMENTS IN UPPER LEFT IN BACK s 2010 D-40EZ Income Tax Return for Single and Joint Filers with No Dependents l * * Filing status: Single, Married filing jointly, Registered domestic partners filing jointly, or Dependent claimed by someone else Fill in if Amended Return Your social security number (SSN) Spouse s/registered domestic partner s SSN Your daytime telephone number Your first name M.I. Last name Spouse s/registered domestic partner s first name M.I. Last name Home address (number, street and apartment number if applicable) City State Zip Code +4 1 Total wages, salaries, tips, unemployment compensation, etc. 2 Taxable interest and ordinary dividends. (If more than 1500, file form D-40.) 3 DC adjusted gross income. Add Lines 1 and 2. 4 Standard deduction plus exemption. If single, enter If filing jointly, enter 7350, or if claimed as a dependent on another s tax return, enter 4000 plus net disaster loss claimed on federal return,.00. See p. 6. Include in Line 4 total. 5 DC taxable income. Line 3 minus Line 4. If Line 4 is equal to or more than Line 3, make no entry. If more than 100,000 file form D Tax. Use the tax tables on pages to find the tax on the Line 5 amount. 7 DC Low Income Credit. Use Calc. LIC/EITC on page 8, to see if LIC or EITC is a greater benefit. 7a Enter number of exemptions claimed on your federal return 7a 8 Net tax. Subtract Line 7 from Line 6. If Line 7 is equal to or more than Line 6, make no entry. 9a 9b 9c 9d Contribution to Public Fund for Drug Prevention and Children at Risk. Contribution to DC Statehood Delegation Fund. Contribution to Anacostia River Cleanup and Protection Fund Direct Deposit. To have your refund deposited to your account checking or savings fill in the oval and enter bank routing and account numbers. See page 7. Routing Number RESERVED 10 Tax and/or contribution(s). Add Lines 8, 9a, 9b, 9c and 9d. 11 Total DC income tax withheld, shown on Forms W-2 and 1099 attach these forms. 12 Tax paid with extension of time to file or with original return if this is an amended return. 13 DC Earned Income Tax Credit. Enter your federal earned income credit See Calculation LIC/EITC on page 7. (Leave blank if you took Line 7 credit.) 13a Enter number of qualified EITC children 14 Total tax payments and credits. Add lines Refund. If Line 14 is the larger, subtract Line 10 from Line Amount owed. If Line 10 is the larger, subtract Line 14 from Line 10. See payment options on page Penalty.00 Interest.00 See page 9. Enter results 18 TOTAL AMOUNT DUE. Add lines 16 and TOTAL REFUND. Subtract Line 17 (results) from Line 15 and enter here. Will the refund you requested go to an account outside of the US? Yes No See p.8. Account Number.00 Third party designee To authorize another person to discuss this return with the OTR, fill in here and enter the name and phone number of that person. See page 8. 13a x.40 = OFFICIAL USE ONLY Vendor ID# a 9b c.00 9d Designee s name Phone number Signature Under penalties of law, I declare that I have examined this return and, to the best of my knowledge, it is correct. Declaration of paid preparer is based on the information available to the preparer. Your signature Date Paid preparer s signature Date Spouse s/domestic partner s signature if filing jointly Date Paid preparer s FEIN, SSN or PTIN Paid preparer s telephone number Revised 11/ D-40EZ Income Tax Return

16 Personal information (SSN, name, address, telephone number) Refer to page 4 of the General Instructions to prepare personal information. Filing status Refer to page 5 of the General Instructions regarding filing status, and fill in the appropriate filing status. Line 1 Total wages, salaries, tips, unemployment compensation, etc. Enter amount from 1040 or 1040A, Line 7; 1040EZ, Line 1; 1040NR, Line 8; or 1040NR-EZ, Line 3. Line 2 Taxable interest and ordinary dividends. If more than 1,500, file the Form D-40. Taxable interest should be shown on your Forms 1099-INT, 1099-OID, or substitute statements. Include interest from series EE, HH and I US savings bonds. Do not report any tax-exempt interest from box 8 or 9 of Form 1099-INT. Report on Line 2: If you have any interest received from a seller-financed mortgage and the buyer used the property as a personal residence; If you have accrued interest from a bond; If you are reporting original issue discount (OID) in an amount less than the amount shown on the IRS Form 1099-OID; If you are reducing your interest income on a bond by the amount of the amortized bond premium; If you are claiming the exclusion of interest from Series EE or I US savings bonds issued after 1989; If you received interest or ordinary dividends as a nominee; or If you had a foreign account or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Foreign accounts. If you own more than 50% of the stock in any corporation that owns one or more foreign bank accounts; or if any time during 2010 you had an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account) unless: The combined value of the accounts was 10,000 or less during the whole year; The accounts were with a US military banking facility operated by a US financial institution; You were an officer or employee of a commercial bank that is supervised by the Comptroller of the Federal Reserve System, or the Federal Deposit Insurance Corporation; the account was in your employer s name; and you did not have a personal financial interest in the account; You were an officer or employee of a domestic corporation with securities listed on a national securities exchange or with assets of more than 10 million and 500 or more shareholders of record; the account was in your employer s name; you did not have a personal financial interest in the account; and the corporation s chief Instructions for the D-40EZ DC Low Income Credit or DC Earned Income Tax Credit Calculation LIC/EITC Take only one of these credits. (Use this calculation to determine which is better for you to claim) a Tax from D-40EZ, Line 6 b Low income credit c Enter the lesser of Line a or Line b d Federal Earned Income Credit claimed on 1040, Line 64a; 1040A, Line 41a; 1040EZ, Line 9a. e DC Earned Income Tax Credit rate f DC Earned Income Tax Credit Multiply Line d by Line e (round to the nearest dollar). Compare Line c to Line f. If Line c amount is greater than or equal to Line f, enter it on D-40EZ, Line 7. If Line f amount is greater than line c, enter it on D-40EZ, Line 13. financial officer has given you written notice that the corporation has filed a current report that includes the account. Report any income shown in Box 1a of the Forms 1099-DIV or substitute statements. You may refer to the General Instructions for Schedule B Interest and Ordinary Dividends from Line 3 DC Adjusted Gross Income. Add Lines 1 and 2. Line 4 Standard deduction plus exemption. Refer to page 6 of the General Instructions regarding standard deduction and personal exemptions. Line 5 DC taxable income. Line 3 minus Line 4. If Line 4 is equal to or more than Line 3, make no entry. If more than 100,000, file the Form D-40. Line 6 Tax. Refer to the instructions on page 7 of General Instructions. Line 7 DC Low Income Credit. Refer to instructions on page 6 of General Instructions. Line 7a Number of exemptions claimed on federal return. Enter the number of federal exemptions. Line 8 Net Tax. Subtract Line 7 from Line 6. If Line 7 is equal to or more than Line 6, make no entry. Lines 9a, 9b and 9c Refer to instructions on page 7 of General Instructions. Line 10 Tax and/or contributions. Add Lines 8, 9a, 9b, and 9c. Line 11 Total DC income tax withheld. Refer to instructions on page 5 of General Instructions. Line 12 Tax paid with extension of time to file or with original return if this is an amended return. Refer to page 7 of General Instructions. Line 13 DC Earned Income Tax Credit. Refer to page 6 of General Instructions. Line 13a Number of Qualified EITC Children. Enter the number of qualified children as defined on page 7 of the General Instructions. Line 14 Total tax payments and credits. Add lines Line 15 Refund. If Line 14 is the larger, subtract Line 10 from Line 14. Include contributions. Answer the IAT question; refer to page 8 of the General Instructions. Line 16 Amount Owed. If Line 10 is the larger, subtract Line 14 from Line 10. Refer to Payment options on page 8 of the General Instructions. Line 17 Penalty and interest. Enter any underestimated penalty and interest owed in the appropriate boxes. Refer to page 9 of the General Instructions. a b c d e f x.40 Line 18 Total amount due. Add lines 16 and 17. Line 19 Total refund. Subtract Line 17 (results) from Line 15. Direct Deposit. Refer to page 7 of General Instructions. Third Party Designee. Refer to page 8 of General Instructions. Signature. Refer to page 8 of General Instructions. PTIN. Refer to page 8 of General Instructions.

17 Instructions for the D-40 To complete your D-40 return, you will need to do a series of calculations contained in these instructions and copy many of the line items and totals on your D-40. You may also need to attach DC schedules, forms and worksheets to your D-40 if you complete any of the DC forms. Unless instructed otherwise, if you complete any part of any Schedules H, I, N, S, or U, attach it to your return, in the order defined in General Instructions, page 9. Schedule H. Homeowners and Renter Property Tax Credit. This schedule allows eligible residents to claim a property tax credit against their DC income tax liability. Total gross income cannot exceed 20,000 of total household gross income. Do not claim this credit for a property owned by a government, a house of worship or a nonprofit organization. See Schedule H in this booklet for more detailed instructions. Schedule I. Additions to and Subtractions from FAGI. This schedule contains two calculations, one for additions and another for subtractions from federal AGI. See Schedule I in this booklet. If you took the 30% or 50% federal bonus depreciation and/or the additional Internal Revenue Code (IRC) Section 179 expenses on your federal return, enter the total on Schedule I, Calculation A, Line 3. Schedule N. DC Non-Custodial Parent EITC Claim. Use this schedule to determine whether a non-custodial parent making courtordered child support payments may claim the DC EITC. See Schedule N in this booklet. Schedule S. Supplemental Information and Dependents. If claiming exemptions, use Schedule S to list each dependents name, social security number and date of birth. Use Schedule S if reporting dependent or other qualifying non-dependent, and head of household information. It contains Calculation G for use in determining the number of exemptions you may claim and Calculation J to determine the DC tax amount for married or registered domestic partners filing separately on the same return. You may also use Schedule S for claiming dependents and deductions for being blind and/or over 65. You may claim an exemption for each of your dependents. You may also claim a deduction for being over 65 or blind. Claiming dependents and deductions for being blind and/or over 65. You may claim an exemption for each of your dependents or other qualifying non-dependent person. If claiming exemptions, use Schedule S to list each dependent s name, SSN, and DOB. You may also claim a deduction for yourself or your spouse/registered domestic partner for being over 65 or blind. Schedule U. Additional Miscellaneous Credits and Contributions. This schedule lists certain additional non-refundable and refundable credits you may be able to claim. It also lists several funds to which you may wish to contribute. See Schedule U in this booklet. Credit for certain DC Government employees who are DC residents and first-time DC homebuyers. This credit, originally limited to DC police officers who are first-time homebuyers in DC, has been expanded. This 2,000 credit is now available to all DC government employees of a DC public charter school, and any person who has accepted an offer to be a DC police officer, firefighter, emergency medical technician, or public school teacher at a DC public charter school. Except for DC police officers, the tax credit is limited to those employees who purchased their first principal residence in DC on or after October 1, 2007, and who are enrolled in the Employer Assisted Housing Program (EAHP) offered by the DC Department of Housing and Community Development. The credit is available for a 5-year period. Enter 2,000 on Schedule U, Part 1a, Line 1. Out of state credit. It includes the amount DC taxpayers may claim as a credit for income tax paid to other state(s) if the income taxed by that state is derived from that state and is of a kind taxed by DC. If tax paid to a state is the total state tax liability shown on the state tax return. (It is not the state withholding shown on your Form W-2.) Complete Calculation K at the bottom of this page to determine your out of state credit. Enter the credit amount on Schedule U, Part 1a, Line 3. If you paid tax to more than one state, enter the respective amounts and other state codes in the spaces provided. For purpose of verification keep a copy of the state income tax return(s) showing the payment(s) for which you are claiming a credit. No DC credit is allowed for any other tax imposed by a state, including the following: Corporate franchise tax; License tax; Excise tax; Unincorporated business franchise tax; and Occupation tax. Personal Information. Refer to General Instructions, page 3 for directions on completing an amended return. Filing for a deceased taxpayer. Fill in the oval for a deceased taxpayer at the top of the page of the D-40. If a taxpayer died in 2010 or 2011 before filing a return, a return must be filed for that person. Complete a D-40 and provide the deceased information, not your own. Do not adjust the deceased s income, exemptions or deductions to reflect the date of death. Tax preparers, other than the surviving spouse/registered domestic partner, such as executors, attorneys, or other personal representatives, must attach letters of administration. If a refund is due, tax preparers must attach a completed FR-147, Statement of Persons Claiming Refund Due a Deceased Taxpayer, found on Calculation K Out-of-state income tax credit a Amount of income tax paid to other state(s), enter from the other state(s) return(s). b Income subject to income tax in other states and received while a resident of DC. c DC adjusted gross income from D-40, Line 15. d Divide Line b by Line c. (Enter the percent.) e DC Tax from D-40, Line 22. f Maximum out-of-state credit. Multiply Line e by Line d. g Enter the lesser of Line a or Line f. Also enter on Schedule U, Part 1a Line 3. a b c d e f g 17

18 and a copy of the death certificate. Do not use the federal form to request a DC refund. Filing Status Refer to General Instructions, page 5. Part-Year Residents NOTE: A temporary absence (even a lengthy one) from your permanent home does not make you a part-year resident. If filing as a part-year resident, you will be given guidance for completing your D-40 throughout these instructions. You are a part-year DC resident if, during the year, you moved out of DC with the intent to permanently leave or moved into DC with the intent to permanently stay. A DC taxpayer domiciled in DC during the tax year, is a full-time DC resident unless he or she changes domicile during the tax year. In such case, he or she will be a part-year resident for the period not domiciled in DC. A DC taxpayer present in DC for 183 days or more and not domiciled in DC during the tax year is a part-year resident for the period present in DC. Number of months of DC residency. Divide the number of days lived in DC by 30 to determine the number of months of residency. Any remainder over 15 days counts as a full months. Example: 196 days of residency in DC divided by 30 = 7 months (6 months plus one month due to the 16 day remainder). Domicile is where a person has his or her permanent home. To change domicile, you have to abandon the previous domicile and establish a new one in another state with the intent to remain. If you resided in DC for only part of 2010, allocate to your DC income and deductions attributable to the time of your DC residency. Also prorate your exemptions and credits. If DC was your home or permanent residence for less than a year, fill in the oval on Line 2 of the D-40, complete the applicable months in the from and to boxes, and enter the number of months in DC. If you are using the standard deduction, complete Calculation C. If you are itemizing deductions, complete Calculation D showing the type and amount of income received: During the time you resided in DC; During the time you were a non-resident; and The total income reported on your federal return. Before completing the D-40, calculate the following: Income received when you were a resident of DC, and when you resided outside of DC; and Deductible expenses paid when you resided in DC and when you resided outside of DC. If you received a state income tax refund while not a resident of DC do not include it in DC income. The same allocation is required for exemptions, credits, and other deductions. If you claimed itemized deductions on your federal income tax return, include, for DC purposes, only those relating to the time you were a DC resident. At the time this booklet went to print, the limitation on itemized deductions had expired. Check the DC Office of Tax and Revenue for any updates on legislation enacted after this form went to print, and a revised Calculation D. Your federal worksheet will assist you in completing Schedule I (Calculations A and B) and Calculations C, D, and E. Keep a copy of your worksheet, a copy of your tax return and all calculations. If you resided in DC for only part of 2010, allocate your DC income and deductions attributable to the time of your DC residency. Also prorate your exemptions and credits. (Note: Calculations A and B are on Schedule I) Calculation C Standard deduction for part-year DC residents a Your standard deduction. Married or registered domestic partner filing separately enter 2,000. All others enter 4,000. b Number of months you lived in DC from D-40, Line 2. c Divide Line a by the number 12. d Part-year DC standard deduction. Multiply Line c by Line b, enter here and on D-40, Line 17. a b c d Note: The limitation on itemized deductions expired on 1/1/2010. Please check the news section of OTR s website for further information regarding any legislation enacted relating to this limitation after this form went to print. Calculation D DC Itemized deductions for part-year DC residents. a Total Itemized Deductions from Form 1040 Schedule A, Line 29; Form 1040NR, Line 17; Form 1040NR-EZ, Worksheet, Line 10. b Portion of Line a that applies to the time you were a DC resident. c Portion of your state and local tax or state and local sales tax deduction from Schedule A, Line 5; or 1040NR, Schedule A, Line 3, that applies to the time you were a DC resident. d DC itemized deductions. Subtract Line c from Line b, enter here and on D-40, Line 17. a b c d 18

19 Standard deduction for part-year DC residents. Adjust your standard deduction to reflect the number of months you were a DC resident. Complete Calculation C on page 18. Number of exemptions for part-year DC residents. Reduce the full exemption amount to reflect the number of months you were a DC resident. Complete Calculation E below. Credit for child and dependent care expenses for part-year DC residents. Complete the DC Form D-2441 and enter the amount from Line 5 of Form D-2441 on Line 23 of the D-40. Attach a copy of your DC Form D Do not include income tax withheld for other states in the DC tax withheld, Line 31, D-40. Income Information Section Copy Lines a through d from the appropriate federal return. Do not recalculate any amounts or totals. Not all items will apply to you. Fill in only those that do. If the amount is zero, leave the line blank. If you had a loss for Lines b, c, d, 3, 6, 15 or 21, fill in the Fill in if loss oval to indicate that the figure entered is a negative one. Do not enter a minus sign or brackets in the boxes. Line a Wages, salaries, unemployment compensation, and/or tips Enter the amount from your federal 1040 or 1040a, Line 7; 1040EZ, Line 1; 1040NR, Line 8; or 1040NREZ, Line 3, plus any unemployment compensation received. Calculation E DC exemption amount for part-year DC residents a Number of exemptions from D-40 Line 18. b Exemption amount per month x (1,675 divided by 12). c Multiply Line b by Line a. d Number of months you lived in DC from D-40, Line 2. e Exemption amount Multiply Line c by Line d. Enter here and on D-40, Line 19. Line b Business income or loss Enter the amount from your 1040, Line 12 or 1040NR, Line 13. Line c Capital gains or losses Enter the amount from your 1040, Line 13, or 1040NR, Line 14. The maximum allowable annual capital loss claim is 3000 (1500 if married or registered domestic partner filing separately). If you had farm income or loss, enter on Line c the amount on Line 18 of your 1040 or Line 19 of your 1040NR. If a loss, fill in the oval. For DC tax purposes, upon disposing of an asset not fully depreciated, compute the capital gain/loss reported on your federal return for the year of disposition excluding any bonus depreciation. Line d Rental real estate, royalties, S corporations, trusts, etc. Enter the amount from your 1040, Line 17 or 1040NR, Line 18. If you had gross income, from DC sources, of more than 12,000 from a non-incorporated business or business activity, including rents and royalties, do not include on D-40. You are required to file a D-30 return. File a DC Form D-30, Unincorporated Franchise Tax Return if capital is a material income producing factor. An S Corporation must file a D-20, Corporate Franchise Tax Return. Computation of DC Gross and Adjusted Gross Income Line 3 Federal adjusted gross income Enter the amount from 1040, Line 37; 1040A, Line 21; or 1040EZ, Line 4; 1040NR, Line 35 or 1040NR, Line 10. Include your taxable portion of pension/annuity in your federal adjusted gross income. NOTE: Any grants and stipends received by certain DC public or charter school teachers under the Housing Support for Teachers Act of 2007 are subject to both federal and DC income tax. Additions to DC income Line 4 Franchise Tax Enter any franchise tax deducted on a federal business tax return, from federal Forms 1065 or 1120S. Line 5 Other additions from DC Schedule I Enter the amount from Line 8 of Calculation A, Schedule I. Line 6 Add Lines 3, 4 and 5 Add federal adjusted gross income, franchise tax deducted and any other additions to DC income. Fill in oval if loss. Calculation F DC Itemized deductions for taxpayers with no limitations on federal itemized deductions a Total federal itemized deductions from 1040 Schedule A, Line 29. a Part-year residents, enter the portion that applies to the time your were a DC resident. b State and local income tax or state and local general sales tax deduction from 1040 Schedule A, Line 5. Part-year residents, enter the portion that applies to the time you were a DC resident. c DC itemized deductions. Subtract Line b from Line a, enter here and on D-40, Line 17. b c Note: Calculation G Number of exemptions is on Schedule S Supplemental Information and Dependents. Calculation H DC Itemized deductions for full-year DC residents with a limitation on federal itemized deductions Note: The limitation on itemized deductions expired on 1/1/2010. Please check the news section of OTR s website for further information regarding any legislation enacted relating to this limitation after this form went to print. 19

20 Subtractions from DC income Line 7 Income received during period of non-residence For each type of income reported on your federal 1040, determine the amount you received when you resided in DC. Subtract that amount from your total income and enter the results on Line 7. Line 8 Taxable refunds, credits or offset of state and local income tax Enter the amount from your 1040, Line 10 or 1040NR, Line 11. Line 9 Taxable amount of social security and tier 1 railroad retirement Enter the amount from 1040, Line 20b or 1040A, Line 14b. Line 10 Income reported and taxed this year on a DC franchise or fiduciary return (D-20, D-30 or D-41) If the income reported on your 1040 included income reported and taxed on a DC franchise or DC fiduciary return, enter that amount here. Attach a statement giving the name of the entity, FEIN or SSN, and your share of the income reported. Refer to General Instructions, page 4 regarding TINs. Line 11 DC and federal government pension and annuity limited exclusion You must be 62 years of age or older as of December 31, 2010, to claim this exclusion. Enter the lesser of 3,000 or the taxable income you received from military retired pay, pension income or annuity income from the DC or federal government during the year. The maximum annual exclusion is 3,000 per person. The remaining amount of the pension/annuity is taxable and must be reported on your return. Attach a copy of your federal Form 1099R. Line 12 DC and federal government survivor benefits If you are an annuitant s survivor and 62 years of age or older as of December 31, 2010, enter the total survivor benefits (do not include Social Security survivor benefits). Line 13 Other subtractions from DC Schedule I Enter subtractions from federal adjusted gross income. Refer to the back of the Schedule I for a detailed explanation of line items. Line 14 Total subtractions from DC Income Add lines DC adjusted gross income Line 15 DC adjusted gross income Line 6 minus Line 14. DC taxable Income Line 16 Deduction type Indicate which type of deduction (itemized or standard) you are taking by filling in the appropriate oval. You must take the same type of deduction on your DC return as you took on your federal return. Line 17 DC deduction amount Do not copy the amount from your federal return. DC amounts are different from those allowed on your federal return. Standard deduction. Reference page 5 of the General Instructions. Part-year DC residents, reference page 18. Itemized deductions. DC income taxes paid are not deductible on your DC return. Therefore, reduce your federal itemized deductions amount by those taxes before entering the total on your DC return. Complete Calculation F on page Note: The limitation on itemized deductions expired on 1/1/2010. Please check the news section of OTR s website for further information regarding any legislation enacted relating to this limitation after this form went to print. Line 18 Number of exemptions Reference page 6 of the General Instructions. Line 19 Exemption amount Reference page 6 of the General Instructions. Line 20 Add Line 17 and 19. Line 21 DC taxable income Subtract Line 20 from Line 15. Enter the result, if it is a minus, fill in the oval. Line 22 Tax If Line 21 is 100,000 or less, use the tax tables on pages to determine your tax. If Line 21 is more than 100,000, use Calculation I below to determine your tax. Calculation I DC tax on taxable income over 100,000 a Taxable income from D-40, Line 21. b Income subtractor. 40, c Subtract Line b from Line a. d Tax rate for income x.085 over 40,000. e Multiply Line c by Line d. f DC tax on income of 40, ,200 g Tax Add Lines e and f. Round cents to the nearest dollar, enter here and on D-40, Line 22. Tax Rates 0-10,000 4% over 10,000-40, % of excess over 10,000 over 40, % of excess over 40,000 Married or registered domestic partners filing separately on the same return Before completing Calculation J, the tax computation, on Schedule S, you must determine each person s separate federal AGI, additions to income, subtractions from income, deductions and exemptions. You must combine the separate amounts for each person before making entries on Lines of the D-40. DC tax, credits, and payments The credits claimed on Lines 23, 24 and 25 are non-refundable, which means they can reduce the taxes you owe, but they will not result in a tax refund. The credits you claim on Lines 28, 29 and 30 are refundable credits, which means if these credits plus any tax payments are greater than your total tax due, you may receive a refund. Line 23 Credit for child and dependent care expenses Do not claim this credit if your filing status is married filing separately. If your status is married or registered domestic partner filing separately on the same return, you may claim the credit and divide it between spouses/domestic partners any way you wish. If you were a full-year DC resident, to figure your DC credit, multiply by.32 the amount from federal Form 2441, Line 13. Enter the result on Line 23 of the D-40. (Do not use the DC Form D-2441.) If you were eligible for the Child and Dependent Care Credit but did not claim it for federal purposes, complete the DC Form D-2441, multiply the result by.32 and claim the DC credit for child and dependent care expenses.